Cost of Quality Benchmarking Tool [Landing Page #2: Appraisal Costs]

Cost of Quality Benchmarking Tool

Cost of Quality = Cost of Good Quality + Cost of Poor Quality

(CoQ = CoGQ + CoPQ)

Our benchmarking tool consists of a survey to collect important cost of quality measures. To help make the Cost of Quality (CoQ) performance indicator (KPI) valuable to quality professionals, this benchmark data collection survey assays different quality costs in order to measure how much organizations generally invest in addressing quality issues, and allow individual groups to compare themselves to these averages.

With a better understanding of the typical normative costs of quality, organizations have an opportunity to improve their operations, identify potential problem areas, reduce costs and maintain quality by integrating these measures into their quality management processes.

Our goal is to provide a community-informed Cost of Quality calculator that will allow users to benchmark their quality costs against similar organizations for the following categories:

Prevention costs
Appraisal costs
Internal failure costs
External failure costs

start the MINI survey

take the full survey

Benefits of Participation

Participating in this benchmarking allows users to document how much their organization invests in specific quality issues and allows quality professionals to compare their organization’s quality costs with their peers.

With a thorough and accurate comparison of quality costs, organizations can better identify problem spots, cost savings, opportunities, and subsequent actions.

*For example, 67% of survey respondents said their organization invests between 25% and 50% of gross sales revenue in quality planning.*

Using the Complete Tool: Consistent Updates and Benchmarks

The mini-poll benchmark tool is only part of a more extensive ongoing (free) benchmarking tool. The complete benchmarking tool asks users about over 35 quality costs associated with prevention, appraisal, and internal and external failure.

The complete benchmarking tool will be segmented by organization size, industry, and other “demographic” factors to allow more direct and accurate comparisons.

By registering and using the complete benchmarking tool, users will receive consistent poll updates and the latest cost of quality benchmarks submitted by other users.

With continual updates, users can see how others have responded to the complete tool over time, comparing and sorting their costs with other organizations with similar demographic characteristics, including:

Gross sales revenue
Company size
Type of industry/organization
Job title